Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
December 18, 2014

Q4 GDP Forecasts Predict Even Slower Growth

Forex Live reports that “Many firms issued lower Q4 GDP estimates on the back of the morning report that October Personal Consumption declined 0.2%. Expectations now center on real growth barely reaching +1% in Q4.”

Wall Street Journal: “U.S. consumer spending fell in October, partly reflecting the effects of superstorm Sandy. The bad start to the fourth quarter of the year, coupled with a mixed third-quarter gross domestic product report out earlier this week, was enough to trigger downgrades to a handful of forecasts.”

Neil Irwin: “But there’s more to the weak fourth quarter than Sandy. One driver of the 2.7 percent growth rate in the third quarter was businesses building up their inventories. As they try to pull those inventories down in the fourth, that will subtract from growth.”

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